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Hospitality Management 24 (2005) 171193 www.elsevier.com/locate/ijhosman

Effect of service orientation on job satisfaction, organizational commitment, and intention of leaving in a casual dining chain restaurant
Woo Gon Kima,, Jerrold K. Leonga, Yong-Ki Leeb
School of Hotel and Restaurant Administration, Oklahoma State University, 210 HESW, Stillwater, OK 74078, USA b Department of Business Administration, Chungju National University, 123 Komdan-ri, Iryu-myon, Chungju-si, Chungbuk 380702, South Korea
a

Abstract The service orientation program developed for restaurant employees can be a competitive advantage for a restaurant operation. The purpose of this study is to examine the relationship between employee service orientation (customer focus, organizational support, and service under pressure) and employees job satisfaction, organizational commitment, and employees intention of leaving. For these purposes, the authors developed structural equations modeling. The empirical results are as follows. First, the customer focus of employees was negatively associated with employees job satisfaction, but positively associated with their organizational commitment. Second, organizational support was positively associated with job satisfaction. Third, job satisfaction was positively associated with organizational commitment, but negatively associated with employees intention of leaving. Finally, organizational commitment was negatively associated with intention of leaving. r 2004 Published by Elsevier Ltd.
Keywords: Service orientation; Job satisfaction; Organizational commitment; Employees intention of leaving; Structural equations modeling

Corresponding author. Tel.: +1-405-744-8433; fax: +1-405-744-6299.

E-mail addresses: kwoo@okstate.edu (W.G. Kim), leong@okstate.edu (J.K. Leong), yklee@chungju.ac.kr (Y.-K. Lee). 0278-4319/$ - see front matter r 2004 Published by Elsevier Ltd. doi:10.1016/j.ijhm.2004.05.004

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1. Introduction The service orientation program will enhance the competitive position of the foodservice enterprise, as it provides cross-training opportunities for employees to improve their professional competencies. Service orientation is an important antecedent for the viability of the foodservice business to provide quality food products and service. Service-oriented service providers will meet the expectations of their guests and ensure customer retention and repeat patronage. In general, there is an association between the service orientation program and employee satisfaction. In turn, the satised employees render a higher quality of service to the guest. For example, Brown et al. (2002) indicated that the employees customer orientation process is central to a service organizations ability to be market oriented. Furthermore, they suggested that customer orientation has a signicant impact on overall service performance. Service orientation at the organizational level inuences the level of the employees job satisfaction (Lee et al., 1999; Yoo et al., 2000), organizational commitment, service image, and business performance (Lee et al., 1999). The high level of commitment to employee satisfaction is supported by the rms commitment to continuous quality improvement. The orientation of new employees and the design of a comprehensive training program may be implemented to keep pace with the changes in consumer demand for products and services. Therefore, there is a need to identify those factors that inuence the employees job satisfaction level. The reason is that the level of employees job satisfaction may inuence the customers evaluation of the company. In particular, service orientation is a major way that a service provider delivers the type of service that creates customer loyalty. According to Berry et al. (1994), service organizations with serviceoriented cultures can attract new customers, obtain more business from existing customers, experience less customer attrition, remain protected from price competition, and encounter fewer complaints from customers. In light of the importance of employee service orientation, the following research questions are pursued: Which dimensions (customer focus, organizations support, and customer service under pressure) of service orientation generate employee satisfaction and employee retention? Which dimensions of service orientation build organizational commitment? To what extent do job satisfaction and organizational commitment affect the employees intention of leaving the company?

2. Review of the literature 2.1. Service orientation There is a proliferation of research on the subject of service orientation and its role in enhancing the competitive advantage of the foodservice enterprise. The purpose of a service orientation program is to explain the corporations philosophy and culture to its prospective employees. Hogan et al. (1984) dened service orientation as a disposition to be helpful, thoughtful, considerate, and cooperative at the individual

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level. In contrast, Lytle et al. (1998) regarded service orientation as internal design characteristics such as the organizational structure, climate, and culture at the organizational level. Bowen et al. (1989) suggested that companies using a service orientation have a stake in the successful implementation of a competitive strategy for improving customer satisfaction. The implication is that service-oriented companies could satisfy their customers through specic service-oriented procedures, which may be a competitive advantage in the restaurant sector. Thus, service orientation should be understood to be a major vehicle in which managers have established differentiation among competing rms. Schneider and Bowen (1993) suggested that the employees perceptions of service-related practices of the service organizations are associated with customer perceptions of service quality. In other words, the organizational climate that is visible only to the employees has a favorable carryover effect on the customers. The consequence of the closeness between the employees and the customers during the service encounters allows the employee to anticipate the customers needs (Schneider and Bowen, 1993). The study conducted by Dienhart et al. (1992) presented the three dimensions of customer focus, organizational support, and customer service under pressure, which related to measuring cognitive and behavioral dimensions of service orientation and its effectiveness in creating customer satisfaction and meeting the customers needs. 2.1.1. Customer focus Dienhart et al. (1992) dened customer focus as the ability of the employees to enjoy their jobs when interacting with the customer, achieving customer satisfaction, and receiving respect from guests. Moreover, the study found that customer focus was a direct consequence of the managements commitment to quality service, an efciently designed work environment, continuous training, and ease of service delivery. There were positive relationships between customer focus and the employees favorable perceptions of job involvement, job security, and job satisfaction (Dienhart et al., 1992). Hartline et al. (2000) contended that the customer-oriented rms would deliver exceptional service. Furthermore, McColl-Kennedy and White (1997) expressed the imperatives of aligning the employees service orientation to improve their awareness of customer focus. Awareness can be accomplished through the dissemination of service strategies to all employees who have direct contact with customers. The quality service standards and practices are enriched through continuous on-the-job training, which reiterates the priority of providing the best possible service. Lastly, Brady and Cronin (2001) stated that the importance of being a customer-oriented rm would be instrumental in meeting the customers service perceptions relative to the employees service performance, product quality, and service environment. The results of this customer focus study indicated that the customers quality expectations, customer satisfaction, and service value were all met. 2.1.2. Organizational support Organizational support refers to managements encouragement of service, training, design of service systems and organizational procedures for optimal service

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delivery (Dienhart et al., 1992). Eisenberger et al. (1986) developed a measure of perceived organizational support that has subsequently demonstrated a positive relationship to employees affective commitment to the organization (e.g., Settoon et al., 1996; Shore and Wayne, 1993). Thus, it is possible that employees will also feel a greater sense of obligation to remain if they view the organization as supportive. Because perceptions of organizational support increase affective attachment to an organization and strengthen expectations that greater effort will be rewarded, employees who think that their organizations support them should exert more effort and thus will perform better than employees who do not think that their organizations support them (Orpen, 1994). Klein and Weaver (2000) examined six socialization dimensions to measure the effectiveness of the organizational support (employee orientation training program) on the participants service performance. The employees who participated in these programs generally exhibited higher organizational commitment, supported the rms mission, understood the rms corporate culture, adopted its values and beliefs, and demonstrated a willingness to adapt to others within the workplace. Moreover, the level of employee training through a realistic job preview, job shadowing opportunities, and core-standards training have instilled loyalty and a positive attitude among resort club employees. Empowerment allows the employees to make those important decisions that will enhance the service expectations of their guests. Empowerment is linked to the level of personal autonomy and job meaningfulness usually enables the employees to work effectively, increase productivity, streamline costs, and reduce operational errors. In general, empowerment may ultimately result in heightened job satisfaction, which translates into greater guest satisfaction and protability through repurchases and word-of-mouth endorsements. 2.1.3. Customer service under pressure Service under pressure postulated by Dienhart et al. (1992) identied the level of expected employee performance when rendering service to customers during peak business periods. They indicated that service under pressure is a combination of customer expectations and managements best practices in providing optimal service during peak periods (Dienhart et al., 1992). The benets of communicating with the employees when they are asked to provide extraordinary service levels during exceptionally busy periods may reinforce their self-condence and job satisfaction. Lastly, service under pressure is driven by the expectations of customers and management of an efcient service delivery system. 2.2. Job satisfaction Job satisfaction is the extent to which a worker feels positively or negatively about his or her job (Odom et al., 1990). Job satisfaction refers to the employees general affective evaluation of their job. In the hospitality industry, job satisfaction helps to ensure that employees will treat customers with the utmost respect (Arnett et al., 2002). Because of the importance of customer contact in developing relationships

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with customers, employees job satisfaction is a primary concern for hospitality organizations that rely upon a loyal clientele. In general, job satisfaction leads to good employee performance, which, in turn makes them less likely to leave (Arnett et al., 2002). Jerome and Kleiner (1995) stated that companies that exhibited high commitment to improving the employees job satisfaction, motivation, and morale may realize long-term benets of corporate success, loyalty, productivity, and employee retention. Job satisfaction has positive association with organizational commitment (e.g. Fletcher and Williams, 1996; Yavas and Bodur, 1999) and job performance (e.g. Babin and Boles, 1996; Birnbaum and Somers, 1993). Employees who are satised with their jobs have greater organizational commitment than do dissatised employees. Shaw (1999) argued that there is a strong negative relationship between job satisfaction and the level of employee turnover, if an individuals personal disposition (positive affect) is taken into consideration. Moreover, Mobley (1977) contended that if the employees are dissatised with their respective jobs, they are more likely to leave the organization for another position. 2.3. Employees organizational commitment Organizational commitment is loyalty to the organization and mobilization of all employees in the development of its goals, purposes, and infrastructure (Lee et al., 1999). Mathieu and Zajac (1990) dene organizational commitment as an attachment to or identication with the organization. Such an attachment may be considered an emotional response, particularly when the individual believes strongly in the organizations goals and values and/or demonstrates a strong desire to maintain membership in the organization. Empirical evidence suggests that job satisfaction is an antecedent to organizational commitment (Brown and Peterson, 1994; Mathieu and Hamel, 1989; Reichers, 1985). The consequences of organizational commitment include retention, attendance, and job productivity. If employees are morally committed to an organization, the following can be expected: increased likelihood of retention, consistent attendance, and increased productivity (McNeese-Smith, 1995; Reilly and Orsak, 1991). The notion of the employees positive commitment to the organization may result in a lower probability of leaving the rm. 2.4. Intention of leaving Intention of leaving is an important outcome in the behavior of restaurant employees. Although intention of leaving is an undesirable outcome for organizations, it is valuable to understand its predictors in order to minimize its negative impact on an organizations effectiveness (Low et al., 2001). To reduce the turnover rate in the hospitality industry, the rm must be sensitive to the intrinsic motivational factors of employees. Woods and Macaulay (1989) stated that turnover was not an issue, since there was an abundant labor supply. However, the labor force is shrinking and this shrinkage brings about high turnover and poor customer

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service. The effects of turnover are related to a reduction in managerial readiness, loss of sales, and a decrease in the companys prots. Researchers have theorized that low levels of organizational commitment will lead to willingness to search for another job, intention of leaving, and turnover. Research results have shown that organizational commitment is negatively related to intention of leaving (e.g., Ingram and Kuen 1990; Sager 1990). 3. Hypothesis This study investigates the structural relationships between service orientation (customer focus, organizational support, and customer service under pressure) and job satisfaction, organizational commitment, and employees intention of leaving. The following relationships are hypothesized, based on the literature review. H1: H2: H3: H4: H5: H6: H7: H8: H9: The greater the customer focus of a restaurant service provider, the higher the service providers job satisfaction. The greater the customer focus of a restaurant service provider, the higher the service providers organizational commitment. The greater the organizational support of a restaurant service provider, the higher the service providers job satisfaction. The greater the organizational support of a restaurant service provider, the higher the service providers organizational commitment. The greater the customer service under pressure of a restaurant service provider, the higher the service providers job satisfaction. The greater the customer service under pressure of a restaurant service provider, the higher the service providers organizational commitment. The greater the job satisfaction of a restaurant service provider, the higher the service providers organizational commitment. The greater the organizational commitment of a restaurant service provider, the lower the service providers intention of leaving. The greater the job satisfaction of a restaurant service provider, the lower the service providers intention of leaving.

4. Model development Based on the research presented in the literature review, a service orientation model is developed. The model postulates the relationship between three components of service orientation and consequences of service orientation. Service orientation can be explained in terms of organizational support, customer focus, and service under pressure. Consequences of service orientation are expressed in terms of job satisfaction, organizational commitment (Jaworski and Kohli, 1993; Lee et al., 1999), and turnover (Lahey, 1984). Job satisfaction and organizational commitment are antecedents of employees intention of leaving (see Fig. 1).

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Service Orientation H1 Customer focus H2 H3

Organizational Support Job Satisfaction

H9

H7 H4 H5
Organizational Commitment

Intention of leaving

H8

Customer Service Under Pressure

H6

Fig. 1. Model development.

5. Methodology 5.1. Prole of a casual dining chain restaurant All units of an international casual dining restaurant in Seoul, Korea were selected because the chain dominates the casual restaurant industry. This restaurant has an excellent reputation, provides superior employee training, and has been recognized as the benchmark in the casual dining industry. We believe that this chain may represent the majority of full-service restaurants that emphasize employee service orientation. This leading full-service, casual theme restaurant emphasizes great food, quality beverage, and outstanding service rendered in a festive dining environment. The interior design is distinctively decorated with authentic antiques/memorabilia that showcases the specic location and decor. The restaurants menu reects the needs of its guests and caters to single adults, families, and seniors. The menu is upscale and reects a variety of delicious and healthy entrees. The corporate culture is to treat the guest with the greatest respect, provide optimal entrees at affordable prices, and deliver superior service. All service failures are addressed at the employee/manager level and an equitable and complete service resolution is provided. Most of the restaurants guests are between the ages of 21 and 49 years and enjoy an exciting dining experience. This chain recruits from four-year hospitality universities and provides employees with an intensive 1114 week manager-in-training program that combines on-the-job training with classroom instruction. This program trains employees in all positions within the restaurant and provides administrative and leadership opportunities. This restaurant hires a mix of part- and full-time employees to staff its operations. The turnover is moderate, because the employment opportunities and promotion possibilities are attractive, but

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employee compensation may not be attractive relative to other industries. Moreover, this casual restaurant has superior unit expansion records and favorable same-store sales. There are 700 restaurants located in 50 countries that are both company- and franchise-owned. 5.2. Survey design Researchers contacted a top executive of an international chain restaurant in Seoul, Korea and explained the purpose of this study. The chain restaurant decided to cooperate with this survey to test the proposed causal relationship between service orientation and job satisfaction, organizational commitment, and intention of leaving. The subjects of this study were drawn from 10 available units of a single chain during the time of the survey. Survey instruments were randomly given to 20 front-of-house employees and managers scheduled to work on a given day. Twenty questionnaires were distributed to restaurant employees for the purpose of pre-testing in July 2001. Based on the comments collected during the pre-testing period, a complete questionnaire was designed. The survey was conducted over a three-week period of September 2001. A letter introducing the purpose of this study and a top executives cooperation letter encouraging the participant to complete and return the questionnaire was enclosed. Out of 450 questionnaires distributed, a total of 350 (78.0%) questionnaires were returned. Of those collected questionnaires, 22 were excluded since they had not been fully completed. After elimination, 328 questionnaires with an effective response rate of 73.0% were coded and analyzed for further analysis. 5.3. Measurement The survey instrument to measure service orientation, job satisfaction, organizational commitment, and intention of leaving was based on previously validated questions adopted by other researchers. Items in all scales were measured on a vepoint, Likert-type scale ranging from 1 (strongly disagree) to 5 (strongly agree). Service orientation: The service orientation scale developed by Dienhart et al. (1992) was used. The service orientation scale was comprised of nine items: (1) interacting with customers is enjoyable, (2) it is important to me that the customer is satised, (3) the employees at my restaurant provide excellent service, (4) my manager encourages me to provide excellent service, (5) the training I received prepared me to provide excellent service, (6) customers treat me with respect, (7) at peak hours it is so busy that we cannot provide excellent service, (8) our service procedures make it easy for me to give excellent service, and (9) my manager expects us to always follow procedures, even if it means giving less than excellent service. Organizational commitment: Organizational commitment was measured by a veitem scale adapted from Jaworski and Kohli (1993). Those ve items were: (1) employees feel as though their future is intimately linked to that of this organization, (2) employees would be happy to make personal sacrices if it were important for the business units well-being, (3) the bonds between this organization and its employees

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are strong, (4) in general, employees are proud to work for this business unit, and (5) employees often go above and beyond the call of duty to ensure this business units well-being. Job satisfaction: The job satisfaction scale, adapted from Lytle (1994), was comprised of ve items: (1) I consider my job pleasant, (2) I feel fairly-well satised with my present job, (3) I denitely like my work, (4) my job is pretty interesting, and (5) I nd real enjoyment in my work. Intention of leaving: The intention of leaving scale was adapted from Lahey (1984) and comprised of ve items: (1) if I have a good opportunity, I would like to nd another job, (2) I do not enjoy this job and have been searching for other positions, (3) I hope that I can nd another job in the same industry, (4) layoffs are a typical occurrence around here, and (5) people often get red from this organization without good reason.

6. Data analysis To test the postulated hypotheses, factor analysis and structural equations modeling were utilized. First, a factor analysis was employed to derive the underlying factors of the nine service orientation attributes, ve organization commitments attributes, ve job satisfaction attributes, and ve intentions to leave attributes. Second, structural equations modeling was used to determine the causeeffect relationships between three dimensions of service orientation and job satisfaction, organization commitment, and intention of leaving.

7. Results Descriptive statistics of the respondents were presented in Table 1. Female employees represented 57.2%, with male employees representing 42.8%. More than one-half of respondents were under 25 years old. Approximately one-third of the respondents were between 26 and 30 years old. Approximately 88% of employees were single or divorced; the remaining 12% were married. Sixty percent of the respondents worked in the front-of-the house, 36% worked in the kitchen, and the remaining 4% worked in the back-of-the house area. Respondents who worked less than a year at a current chain restaurant accounted for approximately 45.9%, followed by three and four years of experience (22.6%), and one and two years of experience (21.9%). Part-time employees comprised 21.8%; 88.2% were full-time employees. Fifteen percent of the employees held a managerial position; 63.5% were entry-level. Approximately one-half of respondents had undergraduate degrees in hospitality management. 7.1. Factor analysis and reliability test A factor analysis was utilized to derive the dimensions of the respondents perceived service orientation level on the nine items developed by Dienhart et al.

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Table 1 Descriptive statistics of respondents Variables Socio-demographics Gender Male Female Age 25 and under 2630 3139 4049 50 and over Marital status Single or divorced Married Work place Front-of-the house Kitchen (Back-of-the house) Other Back-of-the house Position Part-time employees Entry level position Managerial position Years of experience Less than 1 year 12 34 56 More than 6 year Hospitality major Yes No Number %

140 187 186 118 16 4 4 289 38 193 117 14 71 207 48 124 59 61 20 6 158 164

42.8 57.2 56.7 36.0 4.9 1.2 1.2 88.4 11.6 59.6 36.1 4.3 21.8 63.5 14.7 45.9 21.9 22.6 7.4 2.2 49.1 50.9

(1992). The analysis was conducted to understand the underlying dimensions of gathered responses in perceived service orientation level and to apply the categorized factors to the subsequent structural equations modeling analysis. To assess the validity and reliability of each construct, factor analysis and reliability test were used. Nine service orientation items were factor analyzed using the principal component method and varimax rotation procedure. The most common and reliable criterion is the use of eigenvalue in extracting factors, and all factors with eigenvalues greater than 1 were retained. In addition, all items with a factor loading above 0.5 were included. Also, any items which cross-loaded on two factors with factor loadings greater than 0.4 were removed. As shown in Table 2, factor analysis produced three factor structures. Unexpectantly, two items were loaded on other factors and eliminated.

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W.G. Kim et al. / Hospitality Management 24 (2005) 171193 Table 2 Results of factor analysis and reliability test for service orientation Items Factor loading Eigen value Variance explained (%) 26.05 Reliability coefcient 181

Organizational support My manager encourages me to provide excellent service (SO4) My manager expects us to always follow procedures, even if it means giving less than excellent service (SO9) Our service procedures make it easy for me to give excellent service (SO8) The training I received prepared me to provide excellent service (SO5) The employees at my restaurant provide excellent service (SO3) Customer focus Interacting with customers is enjoyable (SO1) It is important to me that the customer is satised (SO2) Customer service under high pressure At peak hours it is so busy that we cannot provide excellent service (SO7) Total variance explained

2.08 .73 .72

.73

.60 .58 .54 1.94 .87 .74 1.09 .96 63.88 13.61 24.22 .65

To test the appropriateness of factor analysis, two measures were used. The KaiserMeyerOlkin (KMO) overall measure of sampling adequacy (MSA) was .783, which falls within the acceptable level. In addition, the Bartletts test of sphericity was 419.490, signicant at p=.000 which showed a signicant correlation among the variables (Hair et al., 1998). The three-factor structure for service orientation resulted in a relatively more workable and meaningful number of composite dimensions, which could be more easily interpreted and used for the subsequent analysis. A three-dimension solution retained in the following factor labels such as organizational support (factor 1), customer focus (factor 2), and customer service under high pressure (factor 3), respectively. The three factors explained 63.9 percent of cumulative variances. The rst factor, organizational support, had ve signicant loadings with a reliability coefcient of .73. It was composed of original variables: my manager encourages me to provide excellent service (so4), my manager expects us to always follow procedures (so9), our service procedures make it easy for me to give excellent services (so8), the training I received prepared me to provide excellent service (so5), and the employees at my restaurant provide excellent service (so3). The factor addressed mainly organization and managers supports for excellent service. The second factor, customer focus, had two signicant loadings with a reliability

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coefcient of .65. It was composed of two original variables: interacting with customers is enjoyable (so1) and it is important to me that the customer is satised (so2). The factor reected issues of service approach and the attitude of service provider. The last factor, customer service under high pressure had one signicant loading, composed of one original variable: at peak hours it is so busy that we cannot provide excellent service (reverse-code). In addition, a reliability test was run for each construct such as job satisfaction, organizational commitment, and intention of leaving. The reliability test results for the ve job satisfaction elements showed that one item was not signicantly intercorrelated: I feel fairly well satised with my present job (js2). The reliability coefcient for job satisfaction was .80. The reliability test results for the ve elements representing organizational commitment showed that one item was not signicantly inter-correlated: employees often go above and beyond the call of duty to ensure this business units well-being (oc5). The reliability coefcient for organizational commitment was .75. Finally, the reliability test for the ve elements representing intention of leaving showed that two items was not signicantly inter-correlated: layoffs are a typical occurrence around here (tit4) and people often get red from this organization without good reason (tit5). This reliability coefcient for intention of leaving was .79. 7.2. Measurement model Overall measurement quality was assessed using conrmatory factor analysis (Gerbing and Anderson, 1988). Although measurement quality is sometimes assessed factor by factor, each multiple-item indicator was considered simultaneously to provide for the fullest test of convergent and discriminant validity. Initial analyses suggested that eight items with low factor loadings (below .50) be dropped from further analyses (see Table 3). All loadings exceed .5, and each indicator t-value exceeds 8.0 (po.001). The w2 t statistics is 164.20 with 90 degrees of freedom (po.001). The root mean squared error of approximation (RMSEA) is .057, the comparative t index (CFI) is .92, the goodness-of-t index (GFI) is .92, the adjusted goodness-of-t index (AGFI) is .89, and the parsimony normed t index (PNFI) is .66. All statistics support the overall measurement quality given a large sample and number of indicators (Anderson and Gerbing, 1988). Furthermore, evidence of discriminant validity exists when the proportion of variance extracted in each construct exceeds the square of the F coefcients representing its correlation with other factors (Fornell and Larcker, 1981). One pair of scales with a high correlation between them was customer focus and organizational commitment (F=.64, F2=.41) (see Table 4). The variance extracted estimates were .51 and .51, respectively, indicating adequate discriminant validity. Although one might also be concerned about the discriminant validity of the customer focus and organizational support constructs, the correlation between customer focus and organizational support was .63 (F2=.40). The variance extracted estimates for these scales were .51 and .44, respectively. Finally, the correlation between organizational support and organizational commitment was .56 (F2=.31).

Table 3 Standardized measurement coefcients and t-values resulting from conrmatory factor analysisa W.G. Kim et al. / Hospitality Management 24 (2005) 171193 Customer focus Organizational support Customer service under pressure Job satisfaction Organizational commitment Intention of leaving

SO1 SO2 SO4 SO5 SO7 JS1 JS4 JS5 JS6 OC1 OC2 OC3 OC4 TIT1 TIT2 TIT3 Variance extracted Composite reliability
a 2

.58 ( 8.75) .83 (12.04) .60 (8.30) .71 (9.28) 1.00 (22.23) .55 .87 .82 .54 ( 8.68) (15.44) (14.38) ( 8.56) .65 .63 .84 .84 (10.76) (10.37) (15.38) (15.47) .77 (12.62) .76 (10.25) .75 (12.38) .56 .79

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.51 .67

.44 .61

.58 .80

.51 .75

w =164.20, 90 degrees of freedom (po.001), GFI=.92, AGFI=.89, CFI=.92, PNFI=.66, RMSEA=.057.

183

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Table 4 Correlation estimates (F) and construct means 1 1. 2. 3. 4. 5. 6. Job satisfaction Organizational commitment Intention of leaving Customer focus Organizational support Customer service under pressure
a

Mean 2.45 3.57 3.10 4.18 3.81 3.14

S.D .76 .73 .91 .74 .63 1.03

1.00 .32a .38a .14a .21a .02

1.00 .29a .64a .56a .10

1.00 .08 .17 .03

1.00 .63a .08

1.00 .08

po.01.

The variance extracted estimates for each of theses scales are .44 and .51, respectively. Thus, according to this assessment, the measures appear to have acceptable levels of validity. 7.3. Structural model results The hypothesized model was tested across the sample (n=249). The resulting w2 is 164.78 with 93 degrees of freedom (p=.000; GFI=.92; AGFI=.89; RMSEA=.056, NFI=.88, CFI=.94), which suggests that the hypothesized model ts the data (see Fig. 2). In Table 4, we present the resulting standardized parameter estimates. Within the overall model, the estimates of the structural coefcients provide the basic tests of the proposed theory. Following the conceptual model, we rst addressed the effects of service orientation on job satisfaction and organizational commitment, and then discussed links between job satisfaction, organizational commitment, and intention of leaving. 7.3.1. Service orientation, job satisfaction, and organizational commitment The set of hypothesis H1H6 addresses the relationship among service orientation, job satisfaction, and organizational commitment. H1 and H2 predict that customer focus has a positive impact on service providers job satisfaction and organizational commitment. For job satisfaction, this prediction suggests a stronger negative coefcient (g11 :46; po:01), whereas path coefcient for organizational commitment is positive and signicant (g21 :66; po:01). Hypotheses, H3 and H4, suggest that organizational support affect service providers job satisfaction and organizational commitment. For job satisfaction, results are consistent with this prediction as evidenced by a positive path estimate (g12 :49; po:01). Unlike the support shown for H3, the results of H4 are equivocal. As not expected, H4 has a positive and insignicant effect on organizational commitment (g22 :06, n.s.). Hypotheses, H5 and H6, predict that customer service under pressure affect service providers job satisfaction and organizational commitment. As not expected,

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Customer Focus

-.46 (-2.95)
a

.66 (3.91) .49 (2.97)

Organizational Support

Job Satisfaction
a

-.32 (-3.94)

.40 (4.55) .06 (.42) .02 (.31)

Organizational Commitment

Intention of Leaving

-.19 (-2.42)

Customer Service Under Pressure

.02 (.31)

Fig. 2. Standardized path coefcients for service orientation and intention of leaving model. w2 164:78, 93 degrees of freedom (po:001), GFI=.92, AGFI=.89, CFI=.94, NFI=.88, RMSEA=.056; apo:01; Solid line: signicant relationship; Dashed line: non-signicant relationship.

path estimates for job satisfaction (g13 :02, n.s.) and organizational commitment (g23 :04, n.s.) are not signicant. 7.3.2. Job satisfaction, organizational commitment, and intention of leaving The set of hypotheses H7H9 address the relationship between job satisfaction, organizational commitment, and intention of leaving. H7 suggests that job satisfaction affect organizational commitment. Results are consistent with this prediction as evidenced by a positive path estimate (b21 :40; po:01). H8 predicts that service provider will display a stronger negative relationship between organizational commitment and intention of leaving. Path estimates are consistent with this prediction as evidenced by a positive path estimate (b32 :32; po:01). Finally, H9 predicts a negative relationship between job satisfaction and intention of leaving. As expected, the path estimates is negative and signicant (b31 :19; po:01). Customer focus had an indirect, negative effect on organizational commitment (.18, po.05). And, organizational support had an indirect, positive effect on organizational commitment (.20, po.01) and had an indirect, negative effect on intention of leaving (.21, po.01). However, customer service under pressure had an indirect, insignicant effect on organizational commitment (.01, n.s.), and had insignicant effect on intention of leaving (.02, n.s.).

8. Discussion This study has described the effects of the three dimensions of service orientation: customer focus, organizational support, and service pressure. Job satisfaction and

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organizational commitment were the mediating variables affecting the employees intention of leaving. To further consider the effects of service orientation, the results of the structural equations modeling are summarized and the three hypotheses are discussed. The direct and indirect relationships are noted in Table 5. The ndings will contribute to the knowledge of the measurable impact of service orientation on the employees intention of leaving the organization. 8.1. Testing Hypotheses 1 and 2 The element of customer focus tends to erode job satisfaction. Although this nding is contrary to the general perception of the impact of customer focus on the employees job satisfaction, it is nonetheless important. The overall mean for customer focus was high (4.18), but the mean for job satisfaction was low (2.45) for this chain restaurant (See Table 4). In the subject casual restaurant, the employees who attempt to provide excellent service may experience less job satisfaction because

Table 5 Standardized structural path estimates Standardized path estimates (t-value) Direct effects Customer focus-job satisfaction Customer focus-organizational commitment Organizational support-job satisfaction Organizational support-organizational commitment Customer service under pressure-job satisfaction Customer service under pressure-organizational commitment Job satisfaction-organizational commitment Organizational commitment-intention of leaving Job satisfaction-intention of leaving Indirect effects Customer focus-organizational commitment Organizational support-organizational commitment Customer service under pressure-organizational commitment Customer focus-intention of leaving Organizational support-intention of leaving Customer service under pressure-intention of leaving Job satisfaction-intention of leaving w2 d.f. P R2 Job satisfaction Organizational commitment Intention of leaving
a b

.46 .66 .49 .06 .02 .04 .40 .32 .19

(2.95)a (3.91)a (2.97)a (.42) (.31) (.65) (4.55)a (3.94)a (2.42)a

.18 (2.19)b .20 (2.33)a .01 (.31) .05 (.68) .21 (2.77)a .02 (.55) .08 (2.22)b 164.78 93 .000 .17 .59 .18

po.01. po.05.

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of low compensation, inadequate fringe benets, and long working hours. Though the negative impact is not a desirable condition, the organization remains responsible for providing a positive and continuous service orientation program that encourages the employees to strive to develop their skills and attain a level of job satisfaction. In view of this rationale, Hypothesis 1 is not supported with an opposite sign to the original postulation. (H1: The greater the customers focus of a restaurant service provider, the higher the service providers job satisfaction.) However, customer focus does improve the organizational commitment. Thus, Hypothesis 2 is supported. (H2: The greater the customers focus of a restaurant service provider, the higher the service providers organizational commitment.) On the other hand, there is an indirect effect between customer focus and organizational commitment. A restaurant will attain a high organizational commitment by improving the employees job satisfaction, which may lead to better individual performance. The restaurant manager may motivate the employees by providing more incentives, awards, job promotion opportunities, and recognition for those who are dissatised. According to Robbins and DeCenzo (2004), the notion of equity theory is dened as the employees perception of what they get from a job situation (outcomes) as compared with their work efforts (input). Furthermore, they compare their own input-outcomes ratio with the input-outcome ratio of other employees. Under the existing circumstances, the employee may consider the future job prospects more important than the immediate-term gains in comparable wage and benets. The employee may continue to exhibit a high degree of loyalty to the organization, continue to work diligently, make inroads into their career paths, and reach their goals and aspirations in the future. They are willing to work under these conditions in order to be eligible for future additional advancement opportunities. These foodservice employees are dedicated to performing their required tasks without the benets of a higher wage rate with hopes of attaining promotions to managerial positions.

8.2. Testing Hypotheses 3 and 4 The notion of organizational support has a positive effect on the employees level of job satisfaction, notably, pleasant working environment, assignment to preferred tasks, interest in the job, and enjoyments of the work. Thus, Hypothesis 3 is supported. (H3: The greater the organizational support of a restaurant service provider, the higher the service providers job satisfaction.) However, there is both a direct and an indirect relationship between organizational support and organizational commitment. This indirect effect path can be expressed as a shared outcome that organization commitment is reinforced through a combination of job satisfaction and organizational support efforts to raise the employees level of performance. The indirect effect, unlike the direct effect, is signicant. Thus, Hypothesis 4 is not supported. (H4: The greater the organizational support of a restaurant service provider, the higher the service providers organizational commitment.)

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8.3. Testing Hypotheses 58 With respect to customer service under pressure, there is no statistically signicant impact on job satisfaction and organizational commitment, thus Hypotheses 5 and 6 are not supported. (H5: The greater the customer service under pressure of a restaurant service provider, the higher the service providers job satisfaction. H6: The greater the customer service under pressure of a restaurant service provider, the higher the service providers organizational commitment.) The mediating component of job satisfaction derived specically from customer focus and organizational support has a positive effect on organizational commitment; thus, Hypothesis 7 is supported. (H7: The greater the job satisfaction of a restaurant service provider, the higher the service providers organizational commitment.) Lastly, increases in the employees organization commitment will have a negative effect on the employees intention of leaving the organization; thus, Hypothesis 8 is supported. (H8: The greater the organizational commitment of a restaurant service provider, the lower the service providers intention of leaving.) Likewise, job satisfaction, a mediating element, has a negative impact on reducing the employees intention of leaving the organization, thus, Hypothesis 9 is supported. (H9: The greater the job satisfaction of a restaurant service provider, the lower the service providers intention of leaving.) The ndings of the study emphasize the importance of a high level of organizational support to maintaining a high level of employees job satisfaction and organizational commitment, which in turn favor employee retention. New and seasoned employees who are trained on a continuous basis are given the condence to be successful and to attain higher performance levels.

9. Conclusions and implications 9.1. Conclusions The purpose of the study was to determine the impact of service orientation on job satisfaction, organizational commitment, and intention of leaving. Customer focus, organizational support, and service under pressure were the antecedents of job satisfaction and organizational commitment. The two elements of service orientation, customer focus and organizational support have a signicant inuence on job satisfaction and organizational commitment. Moreover, even though employees higher customer focus does not always lead to higher employees job satisfaction, the service orientation emphasis will favorably affect organizational commitment, and reduce the employees intention of leaving the organization. In order to enhance employees job satisfaction, the restaurant rm should recognize the employees work efforts with cash incentives, awards, recognition, and job promotion. Thus, a rm should improve its service orientation process to allocate scarce nancial resources to improve the organizational commitment and reduce intention to leave.

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9.2. Implications The restaurant managers may implement a ve-point service orientation program for their employees to improve organizational commitment while minimizing the possibility that employees will leave. The ve points are as follows. First, even though customer focus has a negative impact on the employees perception of job satisfaction, management must nonetheless persevere to improve the employees competencies. The employees service orientation may not always lead to the desired level of satisfaction. Even though the restaurant employees are well-trained to provide excellent service for their guests, the employees dissatisfaction may be partly due to the restaurants poor compensation and benets program, especially for the restaurant under consideration in this study. This nding implies that employees can compare their rewards and benets with those of their competitors, which may signicantly inuence their job satisfaction. Even with low job satisfaction, many employees may perceive their future employment prospects as positive. The foodservice rms customer focus will achieve high organizational commitment through job satisfaction by enhancing the employees level of job satisfaction. This is especially true for the subject chain restaurant, which is expanding internationally, and providing employee promotion and growth in a relatively short period of time. Furthermore, the employees may be consulted in the design of the organizational structure that trusts, respects, and promotes the highly motivated employees, who strive for continuous quality improvement. Moreover, an effective internal marketing program should be implemented to improve employee satisfaction, which creates customer satisfaction. Implementing a good internal program requires a strong commitment from management (Kotler et al., 1999). The manager must regularly monitor employees satisfaction and evaluate their progress. If the employees job satisfaction improves, they will show greater organizational commitment. The customer focus program will reduce employee turnover, increase productivity, and contribute to the protability of the rm. Second, organizational support has a positive effect on job satisfaction, which increases organizational commitment. Moreover, organizational support in the form of educational resources, materials, equipment, and corporate philosophy has a positive impact on job satisfaction, and promotes organizational commitment. The employees demonstrate wisdom and judgment and rely on managerial support, vision, and best practices, and resource allocation, which may enable them to serve their guests more effectively. However, there is no apparent linkage between organizational support and organizational commitment. Organizational support may have a direct impact on employees job satisfaction, but there is no direct linkage to organizational commitment. One implication is that management must realize that there is no necessary association with the increased organization support, which contributes to employees commitment and loyalty. In order to achieve organizational commitment, the rm must customize its support components to match the differing levels of employee development with the educational needs of the individual employees.

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The organizational support afforded to the employees will allow them to think progressively and to visualize the shared goals, articulate the shared vision and provide optimal service to their guests. If the manager continues to provide effective organizational support for the employees, then problems arising from the inability to deliver superior service, inconsistency in service delivery, unwillingness to conform to organizational standards, lack of accountability, and failure to follow instructions will be avoided. The competency level gained through mentoring and empowerment opportunities will establish a benchmark by which these employees will be able to judge their level of performance. The employees should be delegated the authority to exceed their guests expectations. In some cases, restaurants allow the employees to resolve guest complaints up to a specic dollar amount. In this case the employees do what they can to address the problem. Moreover, the employees are personally responsible and accountable for resolving the guests complaint. The empowerment element drives the employee to reach higher levels of performance, either individually, or collectively. Those employees who have been empowered may exhibit a higher degree of self-condence and initiative that may improve their job satisfaction and performance. The vision of management and the resources of the organization should be articulated to work in concert. Third, although the notion of providing customer service under pressure is the underlying principle of job satisfaction and organizational commitment, the ndings of this study do not support such a link. If the manager overemphasizes speedy service delivery to the employees, then the inability of the latter to resolve service failures expeditiously and properly, their impatience with the guests, potential burnout, and verbal abuse of the employees by the guest, may undermine employee satisfaction and organizational commitment. Direct customer-contact employees may experience high levels of stress, conict, and confusion resulting from the continual interface with both customers and their superiors (Babin and Boles, 1996). Thus, service under pressure may have a potential indirect effect on the employees intention of leaving. Their job requires accurate performance during intense work periods while resolving the often contradictory demands of managers and customers (Babin and Boles, 1996). Accordingly, restaurant managers must nd ways to manage their customer-contact employees to reduce their stress and improve their job satisfaction outlook. Fourth, the study shows that job satisfaction is closely allied with the organizational commitment and establishment of the rms competitive advantage. The manager must constantly monitor and evaluate the level of employee satisfaction and reward workers for their productivity. Moreover, management must continually develop the employees skills, and provide equitable career development opportunities to motivate their employees to be more committed to the organization. If the manager concentrates on maximizing employee job satisfaction, then problems relative to employees inability to resolve management conicts, low morale, increased role conicts, intergroup tensions, poor performance, and disciplinary problems may be minimized.

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Fifth, the perceived level of job satisfaction and organization commitment has a negative relationship with the employees intention of leaving. The managers should foster job satisfaction by showing a concern for the welfare of the employees by improving their work environment. Those efforts will assist in reducing the employees desire to leave the organization. Committed employees will have less inclination to seek opportunities with other companies. The manager who provides good job assignments, advancement opportunities, and training will achieve high employee job satisfaction and organization commitment. In turn, this will reduce the employee turnover rate, a serious obstacle to stability and quality service. If the manager nurtures and is genuinely interested in the employees welfare, then problems relative to high turnover, dysfunctional work teams, low condence, inability to make decisions, hesitation, fear of failure, and loss of self-efcacy will be eliminated.

10. Limitations and suggestions for future research This study has the following limitations. Less sophisticated current measures of service orientation may have created some reservations in generalizing our ndings. The existing service orientation measurement items taken from Dienhart et al. (1992) may be further rened to better evaluate the impact of service orientation on job satisfaction. A chain casual dining restaurant segment was studied and the result may not be generalized for other segments of the restaurant industry and/or other hospitality industries. This study was completed in Korea; the results may be carefully interpreted and applied to other international foodservice and hospitality sectors. The ndings between customer focus and employee job satisfaction should be interpreted with some care. Additionally, more sophisticated measures of service orientation need to be developed depending on the unique characteristics of specic segments of the hospitality industry. Further studies are needed to explore the other important antecedents of job satisfaction and organizational commitment. For example, future research focus may include the extent to which individualized mentoring opportunities, which are not addressed in this study, inuence job satisfaction and enhance employee retention. Future research may address the complex issue of employee commitment. Each employee has different levels of commitment, depending on the specic hierarchy of needs met (e.g., working for money, seeking career advancement, achieving respect from those in the restaurant work environment). The underlying structure and causal relationship of this study may be tested on other segments of foodservice industry: quick-service and ne dining segments. Finally, a longitudinal research approach would make additional contributions to our understanding of the consequences of service orientation. The longitudinal research could be directed toward a set of core constructs, making it possible to explore and understand their inferences, their development over time, and their causal sequence.

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